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Defence output and exports scale new highs but fall short of targets
India's defence manufacturing and exports have seen significant shifts over the past decade in production volumes, export values, and private sector participation
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India’s defence sector has seen steady growth in both production and exports over the past decade, reflecting increased industrial capacity and a growing role for the private sector. The production rose 1.7 times since FY17, with the private sector maintaining a consistent share, reflecting gradual but stable progress in domestic manufacturing. Meanwhile, exports have expanded over 15 times, indicating a strategic shift. However, shortfalls in meeting annual targets for both production and exports highlight challenges in scaling up output to reach ₹3 trillion in production and ₹50,000 crore in exports by FY29.
Operation Sindoor marked a strategic shift; it was not only a punitive strike in response to terrorism but a demonstration of Indian missile capabilities independent of foreign platforms and logistics. The campaign showcased the decisive role of missiles such as the BrahMos—employed jointly by the Army, Air Force, and Navy—and revealed gaps in Pakistan's and, by extension, China's air defence systems.
Concurrently, Pakistan responded by announcing the creation of an Army Rocket Force Command (ARFC), openly modelled on China’s People’s Liberation Army Rocket Force (PLARF). The ARFC consolidates Pakistan’s missile assets for conventional conflict, heightening the sense of a regional “missile arms race” and tilting strategic stability toward greater escalation potential.
India currently maintains its major missile assets—BrahMos, Prithvi, Pralay, the evolving BM-04, and the Pinaka multi-barrel rocket launcher—across the three services. This siloed distribution leads to operational fragmentation, slower decision cycles, and inefficiencies in both crisis and peacetime deterrence. In the context of Pakistan and China consolidating their own rocket forces under unified commands, Indian strategic circles argue for a centralised, joint-service Rocket Force that would:
Unify land, air, and naval missile assets for integrated command and rapid response
Enable escalation management by having distinct control over strategic, theatre, and tactical missile assets
Enhance deterrence by providing a clear and credible conventional counterforce
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Improve cost-effectiveness and doctrinal clarity by reducing redundancy and streamlining procurement and development
First Published: Jun 30 2025 | 1:39 PM IST
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